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It plays out as follows: | It plays out as follows: | ||
A [[salesperson]] approaches you with what is, on its face, a narrow and uncontroversial question — one to which, in your direct recollection, the salesperson already knows the answer. This is a sure sign | A [[salesperson]] approaches you with what is, on its face, a narrow and uncontroversial question — one to which, in your direct recollection, the salesperson already knows the answer. This is a sure sign {{sex|she}} is indulging in some kind of [[compliance arbitrage]] — probably of the less odious kind, where {{sex|she}} does at least present the whole picture to the necessary internal control functions — albeit in several<ref>''Legally'' several that is, in the sense of “not joint”.</ref> instalments, each thinly sliced so as to present the controller in question only with those facts the [[salesperson]] considers germane to the risk decision (and helpful to her cause). | ||
As a seasoned compliance professional, you adopt the standard approach: [[Limp celery|''ostensible'' approval]], hedged around with caveats deep enough for you to jump into and hide in later on, should shots ring out in the aftermath. | |||
:“'' | :“''I [[would be]] [[inclined]] to be [[okay with this]], [[subject to]] you confirming the witholding position with {{tag|Tax}},''” you say, happy that you have passed the tangled skein off your desk. | ||
Of course, the tangled skein has not magically winked out of existence: it has simply landed on | Of course, the tangled skein has not magically winked out of existence: it has simply ascended from your desk, hovered momentarily and landed with a thud on some one else’s. This poor blighter, a tax lawyer, will have just the same aspiration as you: to pass the sausage on as efficiently as possible. To fulfill it, he will take exactly the same approach you did: | ||
:“''There may be an increased risk of retrospective withholding which | :“''There may be an increased risk of retrospective [[withholding]] which is hard to quantify,''” she will say (when one gives tax advice for a living one gets adept at saying this sort of thing by rote) “''but as long as the desk is prepared to absorb that additional risk then [[I [have no objections]] to this.''” | ||
And lo, off the escalation goes to the business. [[Salespeople]], naturally, have but one goal — impregnating their [[client]]s — but not in a way that involves assuming any personal responsibility for a transaction which goes wrong. Up the chain it goes, to trading management. Trading management won’t have any idea what absorbing additional tax risk even is, and so will pass it onto the [[chief operating officer]]. | And lo, off the escalation goes to the business. [[Salespeople]], naturally, have but one goal — impregnating their [[client]]s — but not in a way that involves assuming any personal responsibility for a transaction which goes wrong. Up the chain it goes, to trading management. Trading management won’t have any idea what absorbing additional tax risk even is, and so will pass it onto the [[chief operating officer]]. |